2 Jul 2016
But why Reduce Inequalities ?
The dialectic relationship between growth, unequal opportunities and disparate outcomes influences economic policy recommendations when it comes to inequality. We may wish to reduce inequalities because they are morally intolerable. We may also wish to reduce them because they are an obstacle to economic growth, as is the case in certain developing countries.
In developed countries, the relationship between growth and inequalities is still complicated and there is certainly some kind of “right” level of inequality, i.e. a level that does not discourage individuals from providing the necessary efforts but does not result in intolerable disparities in the conditions under which the next generation starts out in life. Can the different reasons for wanting to reduce inequalities be ranked? Is it possible to attain a level of inequality that satisfies all of those criteria?
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